Is Alibaba Group Holding (9988.HK) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Alibaba Group Holding (9988.HK) does not pass the AAOIFI Shari’ah Standard 21 screen. Prohibited income, interest included, is 8.5% of total revenue. AAOIFI’s limit is 5% (Shari'ah Standard 21, 3/4/4). Last checked 2 October 2026.
Alibaba Group Holding is not compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Pass |
| Interest-bearing debt | 30% | 14.52% | Pass |
| Cash and interest-bearing investments | 30% | 50.19% | Review |
| Prohibited income | 5% | 8.55% | Fail |
| Not just cash and debts | 90% | 52.87% | Pass |
Key Findings & Observations
- The cash and interest-bearing investments test couldn’t be settled: The figures give 16.3% and 50.2%, on either side of the limit. Includes long-term investments that may be shares in other companies.Source: AAOIFI Shari'ah Standard 21
- Prohibited income, interest included, is 8.5% of total revenue. AAOIFI’s limit is 5% (Shari'ah Standard 21, 3/4/4).Source: AAOIFI Shari'ah Standard 21
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Frequently Asked Questions about Alibaba Group Holding Limited (9988.HK)
Is Alibaba Group Holding (9988.HK) stock halal?▾
No. Alibaba Group Holding (9988.HK) does not pass the AAOIFI Shari’ah Standard 21 screen. Prohibited income, interest included, is 8.5% of total revenue. AAOIFI’s limit is 5% (Shari'ah Standard 21, 3/4/4). Last checked 2 October 2026.
What is Alibaba Group Holding's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Alibaba Group Holding's ratio is about 14.5%.
How much dividend purification is required for Alibaba Group Holding (9988.HK) stock?▾
Alibaba Group Holding does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Alibaba Group Holding operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Alibaba Group Holding's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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